{Steemit Crypto Academy - Season 2, Week 4} fendit's Don't get lost in the fuzz homework

Hello, it was really a nice time in class with @fendit . Here is my submission to the homework on “Don't get lost in the fuzz.”

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Pixabay

Trading crypto can be a very risky venture. And like a two-edged sword, this business can lead you to massive profits when treated effectively and with proper risk management. On the other hand, it turn out negative, washing one's assets down the drain if care is not taken.

In all, crypto trading beams with potentials that interests a trader at first stance. After completing setup to start trading, those first moments can be very overwhelming and exciting.

One therefore needs to be mindful, so as not to place a wrong foot from start. These mistakes can be catastrophic that it might cause the trader to leave for life.

So, it takes us to ‘how can one trade crypto without losing most of his stakes?' Professor @fendit took us on the topic topic "Don't get lost in the fuzz" in response to this question.
This article is my submission to the assignments given after the class.

Question A:

PLACE YOURSELF IN THE FOLLOWING SITUATION:
YOU BOUGHT BTC A COUPLE OF DAYS AGO AT A PRICE OF USDT 62K. SUDDENLY, YOU SEE THAT THIS SITUATION IS GOING ON:

Screenshot_20210505-214116~2.png
Screenshot from fendit's class

i) What would you have done before reading this class?

Answer


I used to be the anxious kind of trader (maybe, I am still). My reaction to this situation before I attended this class would be a nervy one.
Having taken a buy with the anticipation of soaring, it would have tested my patience when the red candle hit a low of 50931.30. If after buying again, it starts another dip, I would cut off the trade.

ii) What would you do now? Explain in detail if there's something you would do
differently

Answer


With my current exposure from this class, I see things differently. I've learnt to be patient and would apply that here. Anxiety can push one into a fuzz of missing out of the benefits of waiting a bit longer.
But if it was a daily timeframe or more, I would go read up. Maybe some news or policy could have caused that.

Question B:

SHARE YOUR OWN EXPERIENCE WHEN IT COMES TO MAKING MISTAKES IN TRADING:

i) What mistakes have you done when trading and what did you learn from them? If you have little experience when it comes to trading, tell if you got to know about someone else's experience.

My story

My enthusiasm for cryptocurrencies is something I cannot fathom. I look to buy coins as much I can get within my reach. This got me to purchase SafeMoon sometime last month following the hype and trends on the social media.
With me some money reserved for my tuition, it wasn't urgent so I decided to risk it with the hope of making profit. I bought at $0.0000.1142 not realizing it was its peak. The next day, Safemoon began to fall until $0.00000433 on 22nd April. It was sore for me!

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TechBullion

I reached out for my friend, Placid (who I bought the coins from). He said I should have hope of the coin pumping again. Since then, it has been fluctuating, far from its high.

My lessons


I learnt my lessons, though in a harsh way.
First is not to jump into a trade (panic-buying or selling) because of a trend. Whenever people talk much about it, there is a tendency it has hit its highs. It is important one takes his time to analyze a coin before buying or selling.
Secondly, I learnt not to invest any money I'm not willing to lose. This has put people into a state of indebtedness some are yet to recover from. Just like my experience, I faced some immediate pressure that wouldn't have come on me had it been my spare money.
The last lesson I learnt was to place my trade on "stop loss." Maybe, this narrative would have had another face if there was a set limit already. My next trades would be with a 'stop loss' so that exceed a loss I can bear.

ii) Which of the strategies discussed in this class you find the most useful for you? Why?

Answer


For me, the most useful strategy learnt in this class is to “never let my emotions control me.”

Do not let your emotions control you.

I've actually learnt this, not just in my last experience alone but in previous ventures. I let the hype on those coins get over me, diving straight in without properly studying and analyzing the prospects of that coin.

One need to check trends and look at the futuristic direction of the asset and not just buying because some persons are.

Question C:

Place yourself in the following situation:
You're browsing Twitter and you see this:

Screenshot_20210505-214127~2.png
Screenshot from fendit's class
You see that whenever this kind of things happen, BTC prices rush. What would you have done before reading this class? What would you do now? Explain in detail if there's something you would do differently.

i) What would I have done before reading the class?

Answer


To be sincere, if I saw this before the class, I would gone straight to buy BTC without giving it a second thought. I wouldn't even place a stop loss to the trade (like the conventional me). And after taking some profits following a considerable rise in value, I may decide to sell or keep the coins with the hope of rising.
One thing is, Elon Musk is an influential figure and there is a high that BTC would rise after such tweet just like he did with Doge coin in December, 2020. This would be my backing for such decision.

ii) What would I do now after reading the class?

Answer

By virtue of my experience and lessons learnt from this class, I would act differently. First is, no matter how enticing the opportunity is, I would only delve in with my spare money. Now, my assets are only worth calculated risks!

Summary

I must say I'm glad and privileged to be a part of @fendit's class. It was enjoyable and I would love to participate in future classes.
Trading involves a lot including learning how to avoid mistakes and adopting the necessary trading psychology as it applies to any case.

Thank you once again professor @fendit for this exposure.

Sort:  

Thank you for being part of my lecture and completing the task!


My comments:
Your tasks were fine, but I believe you could have given them a bit more development and depth! Although they were fine, I was expecting a bit more!
Also, make sure you focus on markdowns next time, as that can get you a better score!


Overall score:
5,5/10

Thank you prof @fendit. I will take note of the corrections and sure improve